Nutanix Q3 Revenue Up 10%

By Bobby Samwell • Wednesday, May 27 16:18 • Permanent Link

Nutanix reported third-quarter fiscal 2026 revenue of $703.1 million, up 10% from $639.0 million a year earlier.

Annual recurring revenue rose 15% to $2.43 billion from $2.12 billion. Average contract duration increased to 3.4 years from 3.1 years.

Gross margin narrowed slightly: GAAP gross margin was 86.9%, down 10 basis points from 87.0%, while non-GAAP gross margin fell 40 basis points to 87.8% from 88.2%.

Operating expenses climbed on both bases. GAAP operating expenses increased 6.5% to $540.3 million from $507.3 million, and non-GAAP operating expenses rose 8.0% to $460.5 million from $426.5 million.

Operating income improved sharply. GAAP operating income increased to $70.5 million from $48.6 million, a gain of $21.9 million. Non-GAAP operating income rose to $156.5 million from $137.1 million, up $19.4 million. GAAP operating margin expanded to 10.0% from 7.6%, while non-GAAP operating margin rose to 22.3% from 21.5%.

Cash generation softened modestly. Net cash provided by operating activities fell to $207.5 million from $218.5 million. Free cash flow slipped to $197.2 million from $203.4 million.

For the fourth quarter, Nutanix projected revenue of $725 million to $745 million and non-GAAP operating margin of 21% to 23%.

For fiscal 2026, the company raised its revenue outlook to $2.82 billion to $2.84 billion and forecast free cash flow of $760 million to $780 million. Following these announcements, the company's shares moved 0.56%, and are now trading at a price of $46.81. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.